A Dealer Guide to Leasing Fundamentals

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SL20_Leasing_Fundamentals_150wLeasing as an alternative to purchasing a vehicle eliminates the risk of used-car market swings and unforeseen depreciation. Further, as vehicles become more expensive, leasing is an option to keep monthly payments affordable. Yet, even as leasing has increased in popularity, many consumers don't really understand the concept or its vocabulary. This guide aims to help dealers explain leasing, including how it compares to purchasing, so that customers can make the right decision for their individual needs. Discussed are closed-end consumer leases, how leasing benefits both customers and the dealership, and who are the best and worst candidates for leasing.

Tags: lease, leasing, negative equity, equity, gross capitalized cost, cap cost reduction, adjusted cap cost, cap cost, capitalized cost, residual, money factor, gap, gap insurance, gap coverage, financing, depreciation, closed-end lease, Regulation M, Reg M, Regulation Z, Reg Z, SL20

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